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New YC Partner Investment Policy



As of this batch we're introducing a new policy for investments by YC partners in the companies we fund.

YC partners have invested in the startups we fund since the first batch. In the beginning it was harmless, and occasionally even necessary. And other investors couldn't treat investments by YC partners as much of a signal when I was the only one doing it, because I was so haphazard about it. But over the years this gradually changed, as there came to be more YC partners and they paid more attention to picking likely winners, till by the last couple batches, other investors could treat investment by YC partners as an accurate sign of how promising we thought a startup was. Which meant we were now making it harder for the startups that partners didn't invest in to raise money.

Stashed in: YCombinator, @paulg, Hacker News!, Venture Capital

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The implication is that this practice made life harder for many of YCombinator's startups in the past.

YCombinator is like a game of Survivor.

Hacker News thread about this topic:

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